Yesterday’s signals were not triggered, as there was no bearish price action at 0.6689.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6720 or 0.6763.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trades
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6681 or 0.6640.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
NZD/USD Analysis
I wrote yesterday that it made sense to remain bullish above 0.6640 today, despite the long-term bearish trend in this currency pair. I thought that the resistance level at 0.6689 may be hard to break and I felt a period of consolidative action was likely now over the short-term, so my bullish bias here was weak. I was overly cautious, but my bullish bias paid off as the price rose considerably higher, before carving out an obvious new higher resistance level at the inflection point of 0.6720. We have seen a slightly deeper bearish retracement, but I still take a bullish bias above 0.66.81. A sustained break below that level will suggest a deeper bearish pull back and the end of this little bull run we have seen over the past few days. There is major USD-related data due later, and that may be the catalyst for price instability, so be more careful as the trading session goes on.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Meeting Minutes at 7pm.